PLANSPONSOR Weekend Newsdash
Week ending December 15th, 2017

Happy Friday, PLANSPONSOR readers! This week, we’re highlighting health care and other retirement benefits. First, did you know that most Americans underfund their health care savings? An Alegeus survey found a degree of health care savings discipline scored only 25.9 on a 100-point scale—ranking after college savings, retirement savings and emergency fund savings. Next, discover some of the best strategies large and mid-size employers utilize when balancing health benefit costs. Recently introduced by Representative Richard Neal, D-Massachusetts, a bill called the Automatic Retirement Plan Act of 2017 would require employers to hold either a 401(k) or 403(b) retirement plan; automatically enroll participants into the plan; and more. Also, a report found a combination of automatic features, including auto-enrollment and auto-escalation, can boost retirement savings; and a Lincoln Financial survey reports that government employers are pushing for additional provider education; better technology and more, in order to increase participation. All this and more on this week’s edition of PLANSPONSOR Weekend.

Editor's choice
Majority of Americans Under-Funding Health Care Savings
Only 36% have budgeted to make monthly contributions to their health care savings, and 32% have savings goals to cover long-term health care costs. Read more >
Best Practices for Health Benefit Cost Savings
Among large employers, those Gallagher identifies as best-in-class use proactive planning to spend less, while best-in-class mid-size employers rein in costs without shifting the burden to employees. Read more >
Bill Would Require Employers To Automatically Enroll Workers
All employees would have 6% of their income contributed to a workplace retirement plan and have these contributions automatically escalated each year. Read more >
Data and Research
Combination of Auto Features Improves Retirement Savings
Among plans with both automatic enrollment and escalation, 70% have participants saving 10% of more. Read more >
Data and Research
Government Employers Want More Provider Education to Boost Participation
A Lincoln Financial Group study revealed little participation rates in governmental defined contribution plans, compared to 401(k) and 403(b) plans. Read more >
Adidas Sued Over Excessive Fees for 401(k) Participants

Plaintiffs in the lawsuit argue that passive funds would have resulted in better returns net of fees that the actively managed funds offered in the plan.

(b)lines Ask the Experts – Proper Delivery Method for SPDs
Experts from Groom Law Group and Cammack Retirement Group answer questions concerning 403(b) plans and regulations.
Yale Sued Over Wellness Program ‘Penalty’

The lawsuit says the so-called “incentive” Yale offers for participating in the wellness program are in fact a “penalty” that violates non-participants’ right, and it notes that the Equal Employment Opportunity Commission (EEOC) withdrew the incentive portions of its wellness program rules.

Employees in Two States Miss Out on One HSA Benefit
Is this impacting health savings account (HSA) participation?
Some Help for Women’s Retirement Savings Gap May Be Coming

Some legislative proposals, such as the SECURE Act, may address challenges to retirement income adequacy women face, but there are also things retirement plan sponsors can do.

Editorial: Alison Cooke Mintzer

Advertising: Paul Zampitella

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